It added that presently Pakistan’s export policies include an unsubsidized 1-million-ton export quota against 2 million tons exported and freight subsidies of up to $97 per ton in 2017-18.
According to the report, global production for the year 2018-19 is projected down 9 million tons to 186 million, largely because of the 8-million drop in Brazil caused by unfavourable weather and more sugarcane being diverted towards ethanol production.
Moreover, exports have fallen, fueled by the lower supplies in Brazil. USDA said record consumption is anticipated due to growth in markets such as India and Indonesia.
Moreover, global stocks are projected to touch a new high of 53 million metric tons (raw value) because of the massive stock building in India more than offsets lower stocks in China and the European Union.
Also, USDA said global consumption is anticipated to grow to 176.8 million tons in 2018-19 from 174 million tons in 2017-18.
However, this represents a slight decline from May’s report when consumption was projected at 177.6 million tons.
Sugar exports from Pakistan touched a new high of 1.359 million tons, which enabled the country to earn $474 million during the first eleven months (July-May) of the financial year 2017-18.
Last year, the exports of sugar had been recorded at 302,268 tons which fetched the country $158 million in the corresponding period of the last FY17.
FY18 proved to be another record season for sugarcane production as it rose 7.4 percent, touching 81.102 million tons compared to last year’s production of 75.482m tons.